Changes to the Board of Directors of the National Exchange Carrier Association, Inc. and Federal-State Board on Universal Service

The Report and Order released July 18, 1997, promulgates rules directing the National Exchange Carrier Association, Inc. (NECA) to create an independently functioning not-for-profit subsidiary through which it will administer temporarily certain portions of the federal universal service support mechanisms. We also direct that NECA create an unaffiliated, not-for-profit corporation to manage the application and other processes relating to administering the schools and libraries program. We further direct that NECA create another unaffiliated, not- for-profit corporation to manage specified portions of the rural health care program. To ensure continuity in, and efficient administration of, the schools and libraries and rural health care programs, we also conclude that these corporations should continue to perform their designated functions even after the date on which the permanent administrator is appointed. We also direct NECA's independent subsidiary to create a special committee of that subsidiary's Board of Directors with the power and authority to make binding decisions on designated issues relating to the universal service support mechanisms for high cost areas and low-income consumers. Finally, in this Order we establish requirements by which the temporary and permanent administrators will calculate, and the Commission will approve, the quarterly universal service contribution factors.